Is the Total Income (Income after deductions) of resident INDIVIDUAL less than Rs 5 Lakhs?
If YES, No Tax Payable for Resident Individual. Eligible for full tax rebate u/s 87A. And if No, Then tax rates are as follows-
- The Surcharge shall be subject to Marginal Relief
- Higher Rate of Surcharge i.e. 25% & 37% shall not apply on capital gains arising on sale of equity share in a company or a unit of an equity oriented fund or a unit of a business trust liable for securities transaction tax
Partnership Firm & LLP & Local Authority
Domestic Company
Exemptions or Deductions that need to be foregone for claiming lower rate of tax-
• 10AA [SEZ units],
• 32(1)(iia) [additional depreciation qua new plant and machinery @ 20%/ 30%],
• 32AD [15% on new assets in undertaking set up in specified backward areas in Andhra Pradesh, Bihar, Telangana, and West Bengal]
• 33AB [specified percentage of amounts deposited with Tea/ Coffee/ Rubber Board]
• 33ABA [specified percentage of amounts deposited in Site Restoration Account]
• 35(1)(ii)/(iia), 35(2AA) or 35(2AB) [specified deduction for scientific research]
• 35AD [expenditure on specified business]
• 35CCC [expenditure on agricultural extension project]
• 35CCD [expenditure on skill development project]
• Part C of Chapter VIA except section 80JJAA or 80LA or 80M of the Act (such as 80IA/IB/IC/ID/IE etc.)
• set-off of any brought forward losses to the extent such loss relates to deductions mentioned above. Such losses would also not be allowed to be carried forward to subsequent years.
* subjected to Marginal Relief
Foreign Company
&
*Subject to Marginal Relief
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